Leverage in Forex trading allows traders to control a larger position in the market with a relatively small amount of capital. It works like a loan from the broker, enabling traders to amplify their potential profits, but it also increases the risk of significant losses if the market moves against them.

Leverage in forex trading allows traders to control larger positions with a small amount of capital, expressed as a ratio (e.g., 100:1). It amplifies both potential profits and losses, increasing trading risks. Effective risk management is essential when using leverage to prevent substantial losses that can exceed the initial investment.

Leverage in forex trading allows traders to control larger positions with a smaller amount of capital by using borrowed funds. For example, with 100:1 leverage, a trader can manage $100,000 with just $1,000 of their own money. While it can amplify profits, it also increases the risk of significant losses from small market movements.